In an effort to serve consumers who have become more health conscious,a number of firms have begun developing small electronic devices which allow people to monitor various health conditions.These firms are reacting to which of the three key economic ideas?
A)People are rational.
B)People respond to economic incentives.
C)Optimal decisions are made at the margin.
D)Firms attempt to maximize revenues.

Question

Quizplus · Accepted Answer

This is because the firms are responding to the economic incentive created by the increasing number of health-conscious consumers who are interested in monitoring their health conditions. By developing small electronic devices that allow people to monitor various health conditions, these firms are creating a product that appeals to consumers who value their health and are willing to pay for products that help them keep track of it.

In an Effort to Serve Consumers Who Have Become More